Asked by Natalia Smart on Jun 28, 2024
Verified
Which of the following items is classified as part of 'operating activities' in the statement of cash flows?
A) Bad debts expense.
B) Depreciation of non-current assets.
C) Proceeds from the sale of non-current assets.
D) Payments to suppliers for the purchase of goods.
Operating Activities
The principal revenue-producing activities of the entity and other activities that are not investing or financing activities.
Bad Debts Expense
Represents the recognition of accounts receivable that are not expected to be collected.
Non-Current Assets
Assets owned by a company not expected to be converted to cash or used within the business's operating cycle or fiscal year.
- Understand the components and presentation of operating, investing, and financing activities in the statement of cash flows.
- Detect and figure out cash flows connected to operational engagements.
Verified Answer
Learning Objectives
- Understand the components and presentation of operating, investing, and financing activities in the statement of cash flows.
- Detect and figure out cash flows connected to operational engagements.
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